Claridge Public LTD — Interim / Quarterly Report 2014

Feb 27, 2015

Claridge Public Limited

INDICATIVE RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

	2014 (Unaudited)	2013 (Audited)
	€	$\overline{\boldsymbol{\epsilon}}$
Continuing operations Revenue	500.000	1.550.541
Loss after taxation from continuing operations	(861.160)	(1.179.015)
Non-Continuing operations Loss for the year from non-continuing operations	$(10.131.090)$ $(6.106.370)$
Loss for the year	(10.992.250)	(7.285.385)
Loss per share (cent per share) - Basic	(10,16)	16.74

EXPLANATORY STATEMENT

The Board of Directors of Claridge Public Limited at its meeting held on 26 February 2015 examined and approved the above consolidated indicative results for the year ended 31 December 2014. The consolidated indicative result has been prepared in accordance with the International Financial Reporting Standards and the Accounting Standards which were applied for the preparation of the annual financial statements of the year 2013 and the Accounting Standards that are effective as of the 1^st January 2014, as these were presented in the interim financial statement for the six months' period ended 30 June 2014.

The Group of Claridge Public Limited includes its wholly subsidiary company Amathus Vacation Ownership Limited and its associate companies Leisure Holding S.A. and Olympic Lagoon Hotels Ltd.

Financial Analysis

Revenue from continuing operations

The revenue of the Group from its continuing operations for the year 2014, amounted to $\epsilon$ 500.000 compared to $\epsilon$ 1.550.541 of last year, showing a decrease by $\epsilon$ 1.050.541. The significant decrease to the revenue of the Group compared to 2013 is due to the fact that its wholly subsidiary company Amathus Vacation Ownership Ltd, concluded only two sales during the year 2014.

Revenue from Non-Continuing Operations

The revenue from its non-continuing operations for the year 2014 amounted to €5.721.299 compared to €9.972.794 of last year, showing a decrease by €4.251.495. The revenue from its non-continuing operations relate to the Amathus Beach Hotel Paphos. The decrease to the revenue is mainly attributable to the following reasons:

• 1. To the suspension of the operation of the hotel for the period 1 January 2014 to 9 March 2014, due to low occupancy levels during the winter period.
• 1. To the termination of the operation of the hotel as Amathus Beach Hotel on 24 September 2014, in order to undergo extensive renovations and be converted to an Olympic Lagoon hotel.

Loss from continuing operations

The loss of the Group from its continuing operations for the year 2014, despite the decrease in revenue, is improved by $€317.845$ . The improvement is attributed mainly to the following reasons:

• 1. The improvement to the percentage of gross profit, because in 2013 a number of housing units was sold at lower prices than the cost of construction.
• 1. The decrease to the sale and marketing expenses because some of these expenses are directly related to the sales.
• 1. The decrease in the administration expenses.

Loss from non-continuing operations

The loss from its non-continuing operations for the year 2014, amounted to €10.131.090 against a loss of €6.106.370 for the relevant period of last year, showing an increase of $\epsilon$ 4.024.720. The increase to the loss is mainly attributed to the impairment charge of the immovable properties, fittings and equipment of the Company for the amount of $\epsilon$ 5.223.279 (2013: $\epsilon$ 3.792.227) and to the increase of the share of loss of the associated company Leisure Holding S.A., owner of Amathus Beach Hotel Rhodes, by €2.343.009. The increase of the loss in Leisure Holding S.A. is attributed to the impairment charge of the immovable properties, fittings and equipment of the hotel Amathus Beach Hotel Rhodes.

Developments

On 22 January 2015 the board of directors of the Company decided to accept the proposal of K.A. Olympic Lagoon Resort Limited for the sale of Amathus Beach Hotel Paphos as well as 2 apartments at Apollo Heights in consideration of the sum of $€35,000,000$ . The decision of the board of directors was subject to its ratification by the Extraordinary General Meeting of the shareholders of the Company.

On 17 February 2015 an Extraordinary General Meeting of the shareholders of the Company took place which ratified the above decision of the board of directors, provided that is utilization shall not be contrary to any legislative or other provision or obstacle and if it is contrary to any of these, it shall be utilize when such obstacle shall be removed.

On 12 February 2015 the board of directors of the Company accepted a binding offer of Invel Real Estate Management Limited for the acquisition of 100% of the shares of Leisure Holding S.A., owner of the hotel Amathus Beach Hotel Rhodes. The proposal is subject to the fulfilment of a number of conditions and a successful due diligence procedure. The proposal of Invel is for the sum of $E30$ million less its obligations to the bank which amount to approximately $\epsilon$ 24,4 million plus or minus its working capital.

Prospects

The Management of the Company, taking into consideration all up to date data available, as well as the continuing crisis in the area of development and sale of immovable, believes that 2015 shall be another one difficult year and cannot make any provision for the results of the year.

Notes:

• a) The indicative results of the consolidated results of the Group have not been audited by the external auditors of the company.
• b) The current indicative results and the explanatory statement for the financial year ended 31 December 2014 will be published in the daily newspaper «Fileleftheros» and «Simerini» on the 28^th February 2015.
• The indicative result will not be sent to the shareholders, but anyone who wishes to $c)$ receive a copy may apply to the office of the Secretary of the Company, at 10 George Gennadiou Street, Agathangelos Court, Office 303, 3041 Limassol or he may send a facsimile to 25-362001 or to the electronic address pmc@pkdlaw.com to this effect.